Jeff Kindler, CEO, Pfizer went on record in a recent interview with FT, claiming that Pfizer is "willing to acquire" a large pharmaceutical firm in order to "improve its financial health." Kindler adds that "the real goal is to grow revenues...We are open to opportunities and constantly looking at those which are big, small and in-between."
Now, if I were holding any Pfizer stock (which I don't), I'd probably be questioning Pfizer's take-no-prisoners strategy. If you can't beat 'em, acquire them.
Kinda reminiscent of a certain company in Redmond, WA...
- oRiOn
Wednesday, 7 January 2009
Job Cuts at Bristol Myers Squibb
David Moscovitz, an analyst with Caris and Co. probably sums it up best when he says "Unfortunately, for drug companies it's come down to trying to reduce costs in reaction to difficulty they're having developing and successfully launching new products, and also dealing with generic competition in a healthcare system that values cost management more than innovation."
Reuters reported recently that BMS plans to further trim its global workforce by 10% - this is on top of the 10% reduction announced in Dec 2007.
Lemme see if I've got my math right - 90% of 90 % = 19% of BMS staffers are in the job market soon-ish.
For a company that employed 43,000 before the 2007 announcement, thats quite a significant number.
Here's the Reuters story (http://www.reuters.com/article/ousiv/idUSTRE4BF7KL20081216)
- oRiOn
Reuters reported recently that BMS plans to further trim its global workforce by 10% - this is on top of the 10% reduction announced in Dec 2007.
Lemme see if I've got my math right - 90% of 90 % = 19% of BMS staffers are in the job market soon-ish.
For a company that employed 43,000 before the 2007 announcement, thats quite a significant number.
Here's the Reuters story (http://www.reuters.com/article/ousiv/idUSTRE4BF7KL20081216)
- oRiOn
It's not ALL Doom and Gloom!
Well, maybe it is and maybe it isn't...
But you gotta find some humour in it somewhere, somehow.
I'm a big fan of Hugh MacLeod (http://www.gapingvoid.com/) who essentially draws cartoons on the back of business cards and is now working with Microsoft (yes, the one and only) to 'find new ways to get the company tell its story better).
In other words, have a few laughs whilst discussing serious business.
Now, the pharma industry could well take a leaf out of Microsoft's book - when your whole existence centres around extracting your pound of flesh for providing 'cures', it can be somewhat depressing (especially during those moments when you contemplate the meaning of life).
I'll leave you with one of Hugh's classics.
Enjoy -
oRiOn
But you gotta find some humour in it somewhere, somehow.
I'm a big fan of Hugh MacLeod (http://www.gapingvoid.com/) who essentially draws cartoons on the back of business cards and is now working with Microsoft (yes, the one and only) to 'find new ways to get the company tell its story better).
In other words, have a few laughs whilst discussing serious business.
Now, the pharma industry could well take a leaf out of Microsoft's book - when your whole existence centres around extracting your pound of flesh for providing 'cures', it can be somewhat depressing (especially during those moments when you contemplate the meaning of life).
I'll leave you with one of Hugh's classics.
Enjoy -
oRiOn
Pfizer's Woes Highlighted
Derek Lowe, in a November post on his blog about pharma pipelines - (http://pipeline.corante.com/archives/2008/11/03/pfizer_strategy_layoffs_and_money.php) highlights a statement made by Jeff Kindler, Pfizer's CEO in an interview with FT.
'We're facing a very significant loss of exclusivity in Lipitor at the end of 2011. We have a clear plan for positioning the company for strong, profitable growth after that. That plan consists of pursuing significant new opportunities for increased revenues starting with our internal pipeline, getting further growth out of our existing products, growing in the emerging markets, growing our business on off-patent products. We sell billions of dollars of off-patent products and in many parts of the world that's the most important opportunity to meet unmet medical needs and looking for other potential sources of revenues.'
Judge for yourself - but it isn't exactly the kind of comment which would inspire confidence in the investor community. Pfizer's stock hasn't exactly been a shining star in recent times - and its obvious from some of the comments to Derek's post that folks out there are very sceptical about Pfizer's ability to generate profits from 'internal pipelines' or generics, where they face stiff competition from low-cost manufacturers.
And of course, the layoffs continue at Pfizer... despite statements to the contrary issued by official sources in the know, the fact that the severance-package program (due to expire end 2008) has been extended to mid-2009. All of this on top of the 10,000 job cuts and plant closures announced in Jan 2007 (http://www.fiercebiotech.com/story/pfizer-cuts-10000-jobs/2007-01-22). There's been a lot of chatter on pharma blogs about this, especially on Pharmalot - but its clear that these are trying times indeed for Pfizer, once the darling of investors.
-oRiOn
'We're facing a very significant loss of exclusivity in Lipitor at the end of 2011. We have a clear plan for positioning the company for strong, profitable growth after that. That plan consists of pursuing significant new opportunities for increased revenues starting with our internal pipeline, getting further growth out of our existing products, growing in the emerging markets, growing our business on off-patent products. We sell billions of dollars of off-patent products and in many parts of the world that's the most important opportunity to meet unmet medical needs and looking for other potential sources of revenues.'
Judge for yourself - but it isn't exactly the kind of comment which would inspire confidence in the investor community. Pfizer's stock hasn't exactly been a shining star in recent times - and its obvious from some of the comments to Derek's post that folks out there are very sceptical about Pfizer's ability to generate profits from 'internal pipelines' or generics, where they face stiff competition from low-cost manufacturers.
And of course, the layoffs continue at Pfizer... despite statements to the contrary issued by official sources in the know, the fact that the severance-package program (due to expire end 2008) has been extended to mid-2009. All of this on top of the 10,000 job cuts and plant closures announced in Jan 2007 (http://www.fiercebiotech.com/story/pfizer-cuts-10000-jobs/2007-01-22). There's been a lot of chatter on pharma blogs about this, especially on Pharmalot - but its clear that these are trying times indeed for Pfizer, once the darling of investors.
-oRiOn
Tuesday, 6 January 2009
Quotable Quotes :)
The December 2008 FT Global Pharmaceutical and Biotechnology Conference (that was a mouthful, indeed!) threw up some interesting comments by some rather well known delegates.
Health on the Net:
I particularly enjoyed the one by William Burns, CEO, Roche - 'The internet will be to patients around the world what the satellite dish was to the fall of the Berlin Wall'
The R-word:
'There are actually more pressing things for pharma than the recession.... pharma is driven more by biology than economics.' - David Brennan, CEO, AstraZeneca
- oRiOn
Health on the Net:
I particularly enjoyed the one by William Burns, CEO, Roche - 'The internet will be to patients around the world what the satellite dish was to the fall of the Berlin Wall'
The R-word:
'There are actually more pressing things for pharma than the recession.... pharma is driven more by biology than economics.' - David Brennan, CEO, AstraZeneca
- oRiOn
Focus on NovoNordisk
NovoNordisk is the world leader in diabetes treatment - and although it has competition in this segment from Eli Lilly, it is widely acknowledged to provide patients a better alternative (controls on blood sugar levels and blood pressure, weight loss) than most of its rivals.
In these despondent times for global industry (including the pharma sector), NovoNordisk is a beacon of hope - and rightly so, for it is onto something BIG!
Scheduled for release in H1, 2009 in the US, UK and Germany, after it secured approval from the FDA and the European Medicines Agency (EMEA), Liraglutide is going to change the whole way diabetes is treated', according to Viggo Birch, NovoNordisk's UK MD. Why? Well, according to Birch, its an intelligent hormone drug which stimulates beta cell production when exposed to glucose intake and then signals the pancreas to produce insulin.
Quite different from the traditional modes of diabetes treatment - where lifestyle changes (diets, exercises) in conjunction with pills, and later insulin are the preferred treatment methods.
In anticipation of the launch, the company is increasing its US sales force significantly, from its existing headcount of 2000. Currently Novo covers 80% of US doctors prescribing injectibles for diabetes, and 75% of those prescribing tablets.
Its not like the company hasn't done its hard work in terms of clinical trials - 6,500 individuals were included, of which 4,200 received Liraglutide in more than 40 countries.
And now its the big bash!
There is a flurry of ads on job sites, both at its Copenhagen HQ and Princeton, NJ for brand and sales related positions - and its obvious the company is preparing for a big push ahead of a significant first blockbuster drug. A departure from the past, as NovoNordisk has always focused on holistic therapies - rather than getting into direct competition with the likes of Lilly in the GLP-1 (Glucagon-Like-Peptide-1) class of drugs.
Birch has moved to the UK and given up responsibility for the Nordic region - and has doubled the UK headcount to 150, such is the expectation ahead of the UK and German launch.
The cost of diabetes treatments account for 7 - 10% of global healthcare expenditure, and if secondary effects are included, (blindness, kidney failure, cardiovascular diseases) then this figure is much higher.
NovoNordisk has always remained focused on treating a chronic disease like diabetes through its Novomix suite of products - but it has never had a blockbuster drug, instead focusing on therapy. Whether Liraglutide turns out to be a cure for Type 2 diabetes (which is creating havoc with health budgets the world over) remains to be seen, but its definitely time for the company to enjoy its moment in the sun in 2009.
Japan is next on the global bandwagon, but for now, the spotlight's on the US and UK / Germany.
Watch this space for more news on NovoNordisk and Liraglutide, as the story unfolds.
- oRiOn
Further reading:
http://www.novonordisk.com/include/asp/exe_news_attachment.pdf?sAttachmentGUID=a5e5a0f6-97af-4e0d-baae-9f60e16513fc
http://www.nxtbook.com/nxtbooks/advanstaruk/pharmexeceurope1208/#/17/OnePage
http://www.investindenmark.dk/visNyhed.asp?artikelID=19522
http://www.novonordisk.com/diabetes/novomix_splash.asp
In these despondent times for global industry (including the pharma sector), NovoNordisk is a beacon of hope - and rightly so, for it is onto something BIG!
Scheduled for release in H1, 2009 in the US, UK and Germany, after it secured approval from the FDA and the European Medicines Agency (EMEA), Liraglutide is going to change the whole way diabetes is treated', according to Viggo Birch, NovoNordisk's UK MD. Why? Well, according to Birch, its an intelligent hormone drug which stimulates beta cell production when exposed to glucose intake and then signals the pancreas to produce insulin.
Quite different from the traditional modes of diabetes treatment - where lifestyle changes (diets, exercises) in conjunction with pills, and later insulin are the preferred treatment methods.
In anticipation of the launch, the company is increasing its US sales force significantly, from its existing headcount of 2000. Currently Novo covers 80% of US doctors prescribing injectibles for diabetes, and 75% of those prescribing tablets.
Its not like the company hasn't done its hard work in terms of clinical trials - 6,500 individuals were included, of which 4,200 received Liraglutide in more than 40 countries.
And now its the big bash!
There is a flurry of ads on job sites, both at its Copenhagen HQ and Princeton, NJ for brand and sales related positions - and its obvious the company is preparing for a big push ahead of a significant first blockbuster drug. A departure from the past, as NovoNordisk has always focused on holistic therapies - rather than getting into direct competition with the likes of Lilly in the GLP-1 (Glucagon-Like-Peptide-1) class of drugs.
Birch has moved to the UK and given up responsibility for the Nordic region - and has doubled the UK headcount to 150, such is the expectation ahead of the UK and German launch.
The cost of diabetes treatments account for 7 - 10% of global healthcare expenditure, and if secondary effects are included, (blindness, kidney failure, cardiovascular diseases) then this figure is much higher.
NovoNordisk has always remained focused on treating a chronic disease like diabetes through its Novomix suite of products - but it has never had a blockbuster drug, instead focusing on therapy. Whether Liraglutide turns out to be a cure for Type 2 diabetes (which is creating havoc with health budgets the world over) remains to be seen, but its definitely time for the company to enjoy its moment in the sun in 2009.
Japan is next on the global bandwagon, but for now, the spotlight's on the US and UK / Germany.
Watch this space for more news on NovoNordisk and Liraglutide, as the story unfolds.
- oRiOn
Further reading:
http://www.novonordisk.com/include/asp/exe_news_attachment.pdf?sAttachmentGUID=a5e5a0f6-97af-4e0d-baae-9f60e16513fc
http://www.nxtbook.com/nxtbooks/advanstaruk/pharmexeceurope1208/#/17/OnePage
http://www.investindenmark.dk/visNyhed.asp?artikelID=19522
http://www.novonordisk.com/diabetes/novomix_splash.asp
Subscribe to:
Posts (Atom)
Posts
